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Smith & Nephew SN.L

United Kingdom Healthcare
6.3/10
AI Analyst score
10.15 GBP
Last price at analysis date · analyst target 12.79 (+25.9%)
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🟡 HOLD — Hold: reasonable valuation and defensive moat, but wait for signs of growth acceleration or momentum improvement before adding.

Smith & Nephew is a global medical technology company that develops and markets products and technologies in orthopedics, wound management, and surgical technology. Smith & Nephew shows an attractive valuation (forward P/E 11.23, FCF yield 9.40%) and a solid moat (gross margin 68.44%), but growth is modest (revenue +4.60%) and momentum is very weak (12-1: -21.51%), reflecting market doubts about its execution in robotics and competition.

Financial health
6.6
Quality / Moat
6.7
Valuation
7.3
Growth
5.5
Dividend
4.7
Momentum
2.1
Risk & Context
7.6

Detailed metrics

Market and fundamental data as of the analysis date.

💵 Valuation
P/E18.13
Fwd P/E11.23
EV/EBITDA10.35
P/B2.13
P/S1.79
PEG1.02
Market cap8.50 B GBP
Enterprise value14.30 B USD
🏰 Quality and moat
ROIC (approx.)10.0%
Gross margin68.44%
FCF conversion77%
Operating margin14.47%
📈 Profitability and margins
ROE11.85%
ROA5.16%
Net margin10.08%
FCF1.06 B USD
FCF yield9.40%
🏦 Solvency and liquidity
Total debt3.78 B USD
Net debt3.03 B USD
Cash754.0 M USD
EBITDA1.38 B USD
Net debt / EBITDA2.19
D/E73.07
Current ratio2.14
Quick ratio1.11
🚀 Growth
Revenue growth4.60%
Earnings growth5.70%
EPS (TTM)0.56 GBP
EPS (Fwd)0.90 GBP
💰 Dividend and risk
Dividend yield0.03%
Payout52.4%
Beta0.68
Analyst consensusHold (16)
Target price12.79 GBP
52-week range9.91 GBP – 14.27 GBP
⚠️ Main risk: The main risk is execution in surgical robotics and competition from Zimmer and Stryker, which could limit revenue growth and keep momentum negative.
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Full AI report

Generated automatically from the metrics, the macro context and the company's news.

Smith & Nephew is a global medical technology company that develops and markets products and technologies in orthopedics, wound management, and surgical technology. Smith & Nephew shows an attractive valuation (forward P/E 11.23, FCF yield 9.40%) and a solid moat (gross margin 68.44%), but growth is modest (revenue +4.60%) and momentum is very weak (12-1: -21.51%), reflecting market doubts about its execution in robotics and competition.

Score by category

CategoryScore
Financial health6.6
Quality / Moat6.7
Valuation7.3
Growth5.5
Dividend4.7
Momentum2.1
Risk & Context7.6

OVERALL SCORE: 6.3/10

Context and risks

Moderate regulatory risk in the UK due to scrutiny on medical device pricing and the post-Brexit environment. No material exposure to rates, oil, or geopolitics: the medical technology business is defensive and its net debt/EBITDA of 2.19 is not sensitive to a rise in rates.

News considered in the analysis

  • S.N. Nuclearelectrica (BVB:SNN) Stock Gets Fair Value Boost As Analysts Rework Growth Assumptions — Titular confuso que mezcla dos empresas distintas (Smith & Nephew y Nuclearelectrica); sin información nueva relevante para SN.L.
  • Zimmer proposes to cut 580 jobs in Switzerland — Noticia sobre un competidor (Zimmer Biomet); sin impacto directo en los fundamentales de Smith & Nephew.
  • Baxter hires CFO from Smith & Nephew — Pérdida de un directivo clave (CFO) que se marcha a un competidor; impacto moderado en liderazgo financiero, ya parcialmente descontado.
  • SNN Advances Surgical Robotics Through Imperial College Partnership — Colaboración académica para avanzar en robótica quirúrgica; refuerza la innovación a largo plazo, aunque el impacto en beneficios es incierto.
  • FTSE 100 Live: Blue-chips open higher as miners gain, UK inflation ticks up — Ruido de mercado general sin información específica sobre Smith & Nephew.

Verdict: Hold: reasonable valuation and defensive moat, but wait for signs of growth acceleration or momentum improvement before adding.

Main risk: The main risk is execution in surgical robotics and competition from Zimmer and Stryker, which could limit revenue growth and keep momentum negative.

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Automatically generated analysis from fundamental, market and news data. Not personalised financial advice — a research tool, not an individual recommendation. Past performance does not guarantee future results. Last update of this analysis: 2026-09-28. Legal notice, privacy & cookies.